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De-registration of Apex Association of Housing Societies on the objection of Developer

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By the order dated 28.2.2025, the Respondent no.1 has de-registered the Neelkanth Heights Cooperative Housing Societies Association in view of existence of clause in the agreement that the developer has right to form apex society or federation only after completion of the entire project.

The Project “Neelkanth Heights” on larger land has four wings.   The occupancy certificates in favour of housing societies were given in 2004-2005 and 2011.   The societies were registered in 2006 and 2011.

However, the respondent no.3 failed to constitute an apex body or association of societies as required by Section 154B of the MCS Act.   The petitioners took the initiative and its proposal was registered as respondent no.2 Association of Housing Societies on 1.4.2022.

On 29.4.2024, the promoter filed application for de-registration of the Apex Association as it was prematurely registered without consent and that, layout is yet to be completed.

HELD that the formation of Apex Association of housing societies is not a mere extension of the agreement under Section 4 of MOFA or of the obligations under Section 10.   It is an independent legal act of the societies under separate statute of MCS Act.    It is not legally permissible for the respondent no.1 on rely on the clause of the sale agreement to invalidate the statutory act of registration of Apex Association of housing societies.

There is no provision either in MOFA or MCS Act that a promoter’s consent is a sine qua non for registering Apex Association of Housing Societies.   On the contrary, thrust of MOFA is that the flat owners can and should form an association of purchasers regardless of the promoter’s wishes, especially if the promoter delays.

 

Judgment dated 9.5.2025 of the High Court of Bombay in Writ Petition No.4704 of 2025 of Rameshwar Cooperative Housing Society and others   Vs.   Divisional Joint Registrar, Cooperative Societies and others

 

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